Paycom Software, Inc. Earnings Per Share Disclosure
Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive equity incentive awards using the treasury stock method.
The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net income |
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$ |
453.4 |
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$ |
502.0 |
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$ |
340.8 |
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Denominator: |
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Basic weighted average shares outstanding (in thousands) |
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55,765 |
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56,208 |
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57,707 |
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Dilutive effect of unvested restricted stock and restricted stock units (in thousands) |
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351 |
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88 |
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267 |
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Diluted weighted average shares outstanding (in thousands) |
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56,116 |
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56,296 |
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57,974 |
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Earnings per share: |
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Basic |
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$ |
8.13 |
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$ |
8.93 |
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$ |
5.91 |
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Diluted |
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$ |
8.08 |
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$ |
8.92 |
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$ |
5.88 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 22, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.